Furiex recorded third quarter milestone revenue of $10.0 million. These
regulatory milestones were related to achievement of new country
marketing approvals for Priligy® and became due from the Menarini Group
upon closing of the new license agreement on July 30, 2012.

Furiex recorded third quarter royalty revenue of $5.6 million, compared
to $1.3 million for the same period in the prior year and $3.1 million
in the second quarter of 2012. Royalty revenue included royalties
related to Nesina® and Liovel® sales in Japan, and Priligy® sales in
various countries outside of the United States.

Research and development expenses were $14.8 million for the quarter
ended September 30, 2012, compared to $12.0 million for the same period
in the prior year. The increase in research and development expenses
from the prior year quarter ended September 30, 2011 was a result of the
decision to progress with MuDelta Phase III clinical trials in early
2012 and the costs associated with its continued development, partially
offset by decreases in spending for the discontinued PPD-10558 program
and completion of the Phase II clinical trial work related to MuDelta
and JNJ-Q2.

Third quarter selling, general and administrative expenses were $3.2
million for 2012, compared to $2.1 million for the third quarter of
2011. The increase in selling, general and administrative expenses were
due primarily to increases in non-cash stock compensation expense of
$0.4 million and increases in consulting expenses of $0.4 million.

Interest expense of $0.8 million for the third quarter of 2012 related
entirely to our loan agreement with MidCap Funding III, LLC and Silicon
Valley Bank.

Net loss was $3.3 million for the third quarter of 2012, compared to
$13.0 million for the third quarter of 2011. The decrease in net loss of
$9.7 million during the third quarter of 2012, as compared to the third
quarter of 2011, relates to the changes in revenue and expenses
previously described.

Net loss per share for the third quarter of 2012 was $0.33, compared to
$1.32 for the third quarter of 2011.

"The Furiex team continues to advance the MuDelta Phase III clinical
trials," said June Almenoff, M.D., Ph.D., president and chief medical
officer of Furiex. “We have recruited slightly more than 30% of our
targeted patient enrollment needed to complete these pivotal studies.”

"We have made significant strides on multiple fronts,” added Fred
Eshelman, Pharm.D., chairman of Furiex. “MuDelta development remains on
track, Nesina and Liovel royalty revenue from Japan continues to ramp
up, Takeda has resubmitted New Drug Applications for alogliptin and
alogliptin/pioglitazone to the FDA, restructuring of the Priligy
agreements is complete and immediately accretive, and we have secured
$30 million in additional funding to support operations. We believe we
have laid a sound foundation for the development of our product
portfolio.”

Furiex will conduct a live conference call and webcast Friday, November
2, 2012, at 9:00 a.m. ET to discuss its third quarter 2012 results and
financial outlook for 2012 as well as provide an overview of its
business and pipeline. A Q&A session will follow. All interested parties
can access the webcast through the Presentations & Events link in the
Investors section of the Furiex website at www.furiex.com.
The webcast will be archived shortly after the call for on-demand
replay. The conference call will be broadcast live over the Internet and
will also be available using the following direct dial numbers:

Participant dial-in:

+1.877.677.9122 (U.S./Canada)

+1.708.290.1401 (International)

Conference ID:

35741137

About Furiex

Furiex Pharmaceuticals is a drug development collaboration company that
uses innovative clinical development design to accelerate and increase
value of drug development programs by advancing them through the drug
discovery and development process in a cost-efficient manner. Our drug
development programs are designed and driven by a core team with
extensive drug development experience. The company collaborates with
pharmaceutical and biotechnology companies and has a strong, diversified
product portfolio and pipeline with multiple therapeutic candidates,
including one Phase III-ready asset, two compounds in Phase III
development, one of which is with a partner, and three products on the
market. The company's mission is to develop innovative medicines faster
and at a lower cost, thereby improving profitability and accelerating
time to market while providing life-improving therapies for patients.
For more information, visit www.furiex.com.

Except for historical information, all of the statements,
expectations and assumptions contained in this news release are
forward-looking statements that involve a number of risks and
uncertainties. Although Furiex attempts to be accurate in making these
forward-looking statements, it is possible that future circumstances
might differ from the assumptions on which such statements are based. In
addition, other important factors which could cause actual results to
differ materially include the following: continuing losses and our
potential need for additional financing; the risk of finding
collaborators for our late-stage product candidates; progress of product
candidates in clinical trials and regulatory approvals as it relates to
receiving future milestone payments; inability of our existing
collaborators to effectively market approved products for which we
receive royalty and sales-based milestone payments; the risks and
expense of continuing the research and development activities of our
existing candidates; changes in the safety and efficacy profile of our
existing candidates as they progress through research and development;
potential U.S. Food and Drug Administration changes to its regulatory
guidance; new collaborative agreements that we might enter into in the
future; the costs of defending or prosecuting any patent opposition or
litigation necessary to protect our proprietary technologies; and the
other risk factors set forth from time to time in the SEC filings for
Furiex, copies of which can be found on our website.

FURIEX PHARMACEUTICALS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2011

2012

2011

2012

Revenue:

Milestones

$

—

$

10,000

$

—

$

20,000

Royalties

1,272

5,577

2,505

11,297

Total revenue

1,272

15,577

2,505

31,297

Research and development expenses

12,024

14,798

38,123

54,919

Selling, general and administrative expenses

2,100

3,209

6,424

8,732

Depreciation and amortization

19

22

64

64

Total operating expenses

14,143

18,029

44,611

63,715

Operating loss

(12,871)

(2,452)

(42,106)

(32,418)

Interest expense

136

837

136

1,386

Other income, net

—

—

—

—

Loss before provision for income taxes

(13,007)

(3,289)

(42,242)

(33,804)

Provision for income taxes

6

(3)

18

9

Net loss

$

(13,013)

$

(3,286)

$

(42,260)

$

(33,813)

Net loss per basic and diluted share

$

(1.32)

$

(0.33)

$

(4.28)

$

(3.39)

Weighted-average shares used to compute net loss per basic and
diluted share: